PERTH (miningweekly.com) – The South Australian Magnetite Consortium, which consists of ASX-listed Magnetite Mines and Lodestone Equities, has signed a sale and purchase letter of intent (LoI) with Chinese company Ningbo Iron & Steel for the purchase of one-million tonnes a year of iron-ore concentrate.
Ningbo will purchase iron-ore concentrate from the consortium on a long-term contract basis, and is willing to enter into a ten-year sale and purchase agreement for up to one-million tonnes a year of magnetite concentrate.
“The support from Ningbo underscores the attractive qualities of our high-grade, low-impurity magnetite product and will catalyse additional partnerships with the consortium and help drive production development through detailed design and construction and onward,” Magnetite Mines chairperson Gordon Toll said on Tuesday.
The consortium comprises the Mawson iron-ore project, which contains the Ironback Hill prospect, and is estimated to host more than one-billion tonnes of resource.